The $800 Billion Tax Loophole
“As a result of the 1986 bipartisan tax reforms, the tax base was broadened and the tax code was greatly simplified. But these reforms have been gradually undone as Congress has created scores of new tax breaks and loopholes. Want to preserve historic buildings, encourage alternative energy sources, help working families, or give certain industries a boost without appearing to increase spending? Voila — a new targeted tax break is born.
Most tax expenditures are really spending programs designed to look like tax cuts. Picture them as vouchers for healthcare, mortgage payments, daycare, transportation — name the tax break. Dressing these programs up as tax cuts makes them a much easier sell for politicians who fear the “big spender” label. But call them what you will, they drain the money from the Treasury and extend the scope of government. All told, this portion of the budget represents $800 billion in lost government revenues annually.”
It seems to me that there are a few basic reforms to our government that would optimize US productivity and efficiency:
- Tax code simplification to reduce inefficient economic distortions.
- Public finance of elections to allow representatives to focus more time on the general public interests.
I would like to help elect members of Congress who see it the same way. Do you know of any elected officials or candidates who feel likewise?
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3 Responses to “The $800 Billion Tax Loophole”
“Do you know of any elected officials or candidates who feel likewise?”
About public finance of elections? Sure. All representatives of the German Bundestag. But I guess this isn’t what you wanted to know…
I’m with you on tax code simplification, generally, but I don’t agree with public finance of elections.
What we see already with McCain-Feingold (which I think is one of the worst pieces of legislation passed in the past 25 years) is a growing lack of control over campaigns by the actual candidates. Special interest groups of one stripe or another are on their way to becoming the dominant election force. The more we limit campaign contributions to politicians, the more those campaign contributions wind up in the pockets of interest groups rather than candidates. And contrary to what Sen. McCain and others seem to think, we cannot, we will never, manage to stop that money from being raised and spent to influence elections as long as we have the First Amendment.
Public financing of campaigns? No thank you.
Ok, so what exactly is the loophole? Sounds like they listed a bunch of gov’t programs which to me sound like just regular spending. The link to the full story is dead to me.